Analysts Question Oil's 'acts of God' ( Alaskan pipeline shutdown) [View All]

[IChing]

Aug 16, 3:55 AM EDT
analysts Question Oil's 'acts of God'

By STEVE QUINN
AP Business Writer

DALLAS (AP) -- Some analysts are questioning whether Exxon Mobil Corp. and ConocoPhillips Co. can legitimately blame events beyond their control for failing to supply customers following the partial shutdown of Prudhoe Bay oil field.

The contractual clause, force majeure, that excuses a company from fulfilling its obligations is usually excercised following a natural disaster or in war.

Neither was the case when the two oil companies invoked it last week after field operator BP PLC said it would shut down part of the nation's largest oil field because of pipeline corrosion that had gone undetected for years.

If BP was negligent - the British oil giant has accepted responsibility for the lack of upkeep that led to shutdown - does this really qualify as an unforeseen circumstance? As huge interest holders in the oil field, do Exxon Mobil and ConocoPhillips still have some oversight responsibility?>>>>>snip

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